Japan Allocates 268.7MW in 11th Solar Auction With Lowest Bid Of $0.078 Per KWh
Mar 11, 2022
Japan's Green Investment Promotion Organization has released the final results of a recent auction of solar projects rated at more than 250 kilowatts.
According to the government operating agency, we have selected 273 PV projects with a total capacity of 268.7MW through a procurement campaign, which is the 11th in the country's utility-scale solar auction programme and will be the last to award fixed tariffs. From the next auction, developers will receive feed-in tariffs.
The lowest bid in the auction was 8.99 yuan/kWh ($0.078), and the average final bid was 9.99 yuan. The price ceiling is set at RMB 10.25 per kWh.
Japanese authorities have accepted review of 345 project proposals with a total capacity of 278.5MW.
The agency stressed that this is the first time the minimum price has breached the 9 yen threshold. However, the total solar power generation was lower than the tenth auction, where about 340MW was allocated and the lowest bid reached RMB 10.23/kWh.
In 2021, the Japanese government has allocated a total of 675 MW of PV capacity in three different auctions. In the previous auction, it allocated 942MW.
The main issues that Japanese solar developers have to address are land availability - due in part to restrictions on the use of abandoned agricultural land - and grid constraints.
